BILL ANALYSIS
AB 2134
Page 1
Date of Hearing: April 12, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
AB 2134 (Chesbro) - As Introduced: February 18, 2010
SUBJECT : Alcoholic beverage control: tied-house restrictions:
instructional events: beer.
SUMMARY : Allows craft brewers to conduct and participate in
events called "Beer Maker Dinners" for consumers held at retail
accounts (restaurants that purchase a craft brewer's products)
featuring craft beers paired with food. This measure creates a
tied house exception very similar to one in existing law for
winemakers. Specifically, this bill :
1)Allows licensed beer manufacturers and holder's of a beer and
wine importer's general license, or any director, partner,
officer, agent, or representative of that person, to conduct
an instructional event held at an on-sale retail licensee's
premises featuring beer, subject to specified conditions.
2)Provides that no alcoholic beverage may be given away in
connection with the instructional event, as specified.
3)Includes provisions that, if violated, would result in a
misdemeanor, would impose a state-mandated local program.
EXISTING LAW :
1)Establishes the Department of Alcoholic Beverage Control (ABC)
and grants it exclusive authority to administer the provisions
of the ABC Act in accordance with laws enacted by the
Legislature. This involves the licensing and regulation of
businesses involved in the manufacture, importation, and sale
of alcoholic beverages in the state.
2)Permits an on-sale retail licensee of wine or distilled
spirits to conduct "instructional" consumer tastings on the
licensed retail premise provided the following conditions are
met: a) no more than ounce of distilled spirits is offered in
one tasting; b) no more than one ounce of wine is offered in
one tasting; and, c) no more than three tastings are offered
to an individual in one day. An instruction may include the
history, nature, values and characteristics of the product
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being offered, and the methods of presenting and serving the
product.
3)Authorizes beer manufacturers and wholesalers to offer beer
samples (not to exceed eight ounces per person, per day) to
individuals of legal drinking age at on-sale retail licensed
premises under specified conditions.
4)Permits a licensed winegrower, manufacturer, importer, or
wholesaler to provide samples of the alcoholic beverages,
which are authorized to be sold by the licensee in accordance
with rules prescribed by the ABC. A retail licensee, however,
is not authorized to provide any free samples of alcoholic
beverages. Moreover, ABC regulations provide that samples of
alcoholic beverages may only be given away to licensees or
employees of licensees who are in a position to purchase the
product or who are in need of additional information about the
product, as specified.
5)Authorizes distilled spirits manufacturers to conduct tastings
and provide distilled sprits without charge for events
sponsored by nonprofit organizations. Only persons affiliated
with the nonprofit organization, including up to three guests,
may attend. No distilled spirits may be sold or solicited for
sale at the tasting, and the organization must obtain a permit
from ABC prior to the event.
6)States that the "Tied-House" Law, separates the alcoholic
beverage industry into three component parts of manufacturer,
wholesaler, and retailer. The original policy rationale for
this body of law was to prohibit the vertical integration of
the alcohol industry and to protect the public from predatory
marketing practices. Generally, other than exemptions granted
by the Legislature, the holder of one type of license is not
permitted to do business as another type of licensee within
the "three-tier" system.
FISCAL EFFECT : Unknown
COMMENTS :
According to the sponsor, the California Small Brewers
Association, this bill will allow beer manufacturers and
importers the privilege of participating in "Beer Maker Dinners"
at licensed on-sale retail premises (i.e. restaurants) and
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communicating the date, time and location of these events to
their customers.
The sponsor states, these events will provide a unique
opportunity for brewers and their representatives to personally
meet with consumers and provide instruction on existing and
emerging craft beer products while being paired with food.
Unfortunately, under current law, several restrictions make it
difficult for craft brewers to engage in these types of
instructional events for consumers. Current law requires: 1)
The brewer and/or their representatives must be paid an
"honorarium" by the retail account to attend; and 2) The brewer
cannot advertise the location of the "Beer Maker Dinner" to
interested parties.
Under current law, winegrowers are able to conduct "Wine Maker
Dinners" at licensed retail accounts. The law allows a
winegrower representative to conduct the educational event
without compensation from the retail establishment; and allows
the winegrower to advertise the event under specified
conditions.
This measure will allow California craft brewers to conduct
"Beer Maker Dinners" with the same privileges and protections
currently enjoyed by winegrowers when they conduct "Wine Maker
Dinners" under current law. Specifically, the craft brewer or
their representative can: 1) Participate in the "Beer Maker
Dinner" without having to be paid an "honorarium" by the retail
account; and 2) Advertise the location of the "Beer Maker
Dinner" to interested parties.
The one exception is that under this bill no alcohol may be
given away at the "Beer Maker Dinners."
Clarifying amendment : To clarify the intent of the bill, the
author might want to consider the following amendment: Page 3,
Line 10, Strike ", without limitation," and Page 3, Line 11,
after the word "licensee", add "to the consumer"
Prior legislation : AB 1245 (Torrico), Chapter 629, Statutes of
2008. Modifies an existing provision of the Alcoholic Beverage
Control Act (ABC Act) to allow beer manufacturers to give adult
consumers promotional advertising items valued up to $3.
AB 2293 (DeLeon), Chapter 638, Statutes of 2008. Allows a
manufacturer of distilled spirits, winegrower, rectifier,
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distiller, bottler, importer, or wholesaler of distilled spirits
or wine or its authorized agent to entertain consumers by
invitation at private parties and events in connection with the
sale or distribution of wine or distilled spirits, subject to
certain conditions.
SB 1548 (Murray) Chapter 670, Statutes of 2006. Authorizes beer
manufacturers and wholesalers to offer beer samples (not to
exceed eight ounces per person, per day) to individuals of legal
drinking age at on-sale retail licensed premises, as specified.
AB 2285 (V. Brown) Chapter 248, Statutes of 1998. Allows
on-sale retail licensees to offer limited tastings of wine or
distilled spirits at the licensed establishment.
REGISTERED SUPPORT / OPPOSITION :
Support
California Small Brewers Association
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531